FX Morning Update November 28, 2011
USD/CAD Open: 1.0331-35 Overnight Range: 1.0324-1.0471
The Canadian dollar rocketed higher overnight vs. the USD driven by positive risk sentiment. Oil is at $99.69 and gold is at $1,724. NY futures are pointing higher today. This week’s major data released include, US new home sales (Monday), US consumer confidence (Tuesday), US ADP payroll report and Canadian GDP (Wednesday), US ISM Mfg. (Thursday), and Canadian and US jobs data (Friday).
The short term Canadian dollar technicals remain negative. For today, USD resistance is at 1.0370, 1.0430, 1.0450, and 1.0510. Support is at 1.0320, 1.0274, and 1.0220.
The loonie, stock futures, and oil prices all rocketed higher overnight driven by hopes that progress has been made be eurozone policymakers. Stop losses have also exacerbated the move. The IMF was said to be preparing to help Italy, but this report has been denied. The EFSF fund could soon be ready to borrow against. Germany and France are working hard to establish rules that more forcefully require member states to follow budget deficit requirements. Markets will be closely watching eurozone government debt auctions to see if yields will decline. While reported retail sales on Black Friday were strong, this is likely not the catalyst that is driving markets higher, more likely, something is in the works in the eurozone, which should help reduce the tail end risk of contagion. The key question remains if markets are chasing headlines with any substance.
Today’s Range: 1.0275 – 1.0375
Daily Market | Knightsbridge Foreign Exchange
By Admin | December 2, 2011 | Daily Update |
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